You might be wondering why Portugal is so keen on its ISV tax ? Why does it apply a high IUC tax compared to other European countries ? Finally, why is gasoline so expensive in Portugal ? Taxes of course ! You will have some answers with the latest figures from the Portuguese tax authorities concerning the revenue for the year 2019 and the figures are quite good because Portugal harvested 1.68 billion more than in 2018. Revenues from the automotive sector and oil are notably up sharply. The Portuguese State thus collected 46 billion euros in tax in 2019 in total, a figure growing by 3.8% compared to 2018. In detail some taxes see their collection drop like the ISV, while the IUC breaks records. Lisbob, the expatriate assistant in Portugal, tells you everything about tax revennue in Portugal.
Record year for tax revenue in Portugal : € 46 billion in 2019, + 3.8%
46 BILLION EUROS IN TAXES IN 2019, + 3.8%
With a total of 46.46 billion euros, the Portuguese State collected a record amount of tax in 2019. Portugal thus recorded growth of + 3.8%, an increase of 1.68 billion.
The IUC, the single circulation tax which must be paid each year, increases by 8.8% and the ISP (petroleum product tax) by 7%. Portugal is taking advantage of its economic upturn to collect ever more taxes.
ISV TAX REVENUE (IN MILLIONS)
The 3.8% increase in tax revenue can be explained "mainly by the positive development of VAT revenue as well as, to a lesser extent, by the growth of the IRS (income tax) and the ISP (Tax on petroleum products) ".
ISV DOWN, IUC BREAKS RECORDS
This record of tax revenue collected by the State was achieved despite a drop in revenues from ISV (Taxe on vehicles). Indeed, the ISV's collection amounted to 727 million euros for 2019 (+39.6 million euros or -5.2%), despite a new calculation method even more penalizing.
IUC TAX REVENUE (IN MILLIONS)
Regarding the IUC, 402 million euros were collected (+33.8 million euros, or 8.8% more). Finally for the ISP (tax on petroleum products) Portugal received 3.51 billion euros, a figure up by 230.3 million euros compared to 2018.
